{"id":15734,"date":"2021-03-24T00:50:30","date_gmt":"2021-03-24T00:50:30","guid":{"rendered":"https:\/\/woodriverweekly.com\/?p=15734"},"modified":"2021-03-23T19:51:57","modified_gmt":"2021-03-23T19:51:57","slug":"an-ira-by-any-other-name","status":"publish","type":"post","link":"https:\/\/woodriverweekly.com\/index.php\/2021\/03\/24\/an-ira-by-any-other-name\/","title":{"rendered":"An IRA By Any Other Name"},"content":{"rendered":"

BY JENNI RILEY, MBA, FPQP\u2122<\/p>\n

\"\"
Jenni Riley is a Financial Paraplanner Qualified ProfessionalTM and Director of Operations at Hazlett Wealth Management, LLC. Learn more by visiting HazlettWealthManagement.com. HAZLETT WEALTH MANAGEMENT, LLC is independent of Raymond James and is not a registered broker\/dealer. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Securities offered through Raymond James Financial Services, Inc., member FINRA\/SIPC. 675 Sun Valley Road in Ketchum, Idaho, 208.726.0605<\/figcaption><\/figure>\n

Individual retirement accounts (IRAs) are savings and investment accounts with special tax breaks. Here are some distinctions between Traditional and Roth IRAs.<\/p>\n

Traditional IRA:<\/span> Contributions to a traditional IRA may be tax-deductible depending on the taxpayer\u2019s income, tax-filing status, and other factors. Account-holders may contribute up to $6,000 per year ($7,000 if you are 50 years or older).\u00a0A taxpayer\u2019s annual income does not limit contributions.<\/p>\n

Roth IRA<\/span>\u00a0\u2013 Like Traditional IRAs, contribution limits apply to Roth IRAs. With a Roth IRA, your allowable contribution may be reduced or eliminated if your annual income exceeds certain limits. Contributions to a Roth IRA are never tax-deductible, but distributions will ultimately be income tax-free if certain conditions are met. Roth IRAs do not require withdrawals until after the death of the owner.<\/p>\n

Employer-sponsored IRA plans have different criteria and features.<\/p>\n

Simple IRA Plan<\/span>: Ideal for employers with 100 or fewer employees. Employees may defer up to $13,500 of their salaries ($16,500 for those 50 and older.)\u00a0Employers may match employee contributions or contribute 2% of staff compensation regardless of workers\u2019 contributions.<\/p>\n

SEP IRA<\/span>:\u00a0A Simplified Employee Pension Plan IRA can be a fit for self-employed individuals who want to minimize paperwork and plan costs while amplifying their retirement savings. The employer makes all contributions. Salary deferrals are not allowed.<\/p>\n

RMDs or Required Minimum Distributions must be taken from a Traditional IRA, SEP IRA, SIMPLE IRA, or retirement plan account in the year you reach 72 (70 1\/2 if you reach 70 1\/2 before January 1, 2020).<\/p>\n

Withdrawal of pre-tax contributions or earnings will be subject to ordinary income tax and, if taken before age 59 1\/2, may be subject to a 10% federal tax penalty. RMDs are generally subject to federal income tax and may be subject to state taxes. Consult your tax advisor to assess your situation.<\/p>\n

Jenni Riley,\u00a0FPQP\u2122\u00a0is a Financial Paraplanner Qualified Professional\u2122 and Director of Operations with HAZLETT WEALTH MANAGEMENT, LLC, which is independent of Raymond James and is not a registered broker\/dealer. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Securities offered through Raymond James Financial Services, Inc., member FINRA\/SIPC. 675 Sun Valley Road, Suite J1 + J2 Ketchum, Idaho 83340 208.726.0605. HazlettWealthManagement.com<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

BY JENNI RILEY, MBA, FPQP\u2122 Individual retirement accounts (IRAs) are savings and investment accounts with special tax breaks. Here are some distinctions between Traditional and Roth IRAs. Traditional IRA: Contributions to a traditional IRA may be tax-deductible depending on the taxpayer\u2019s income, tax-filing status, and other factors. Account-holders may contribute up to $6,000 per year […]<\/p>\n","protected":false},"author":1,"featured_media":15233,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","_pvb_checkbox_block_on_post":false,"footnotes":""},"categories":[2,16],"tags":[],"class_list":{"0":"post-15734","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-commentary","8":"category-finance"},"_links":{"self":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/15734","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/comments?post=15734"}],"version-history":[{"count":1,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/15734\/revisions"}],"predecessor-version":[{"id":15737,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/15734\/revisions\/15737"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/media\/15233"}],"wp:attachment":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/media?parent=15734"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/categories?post=15734"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/tags?post=15734"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}